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re: OT: Let's talk about oil/gas prices
Posted on 1/26/15 at 4:58 pm to Hog on the Hill
Posted on 1/26/15 at 4:58 pm to Hog on the Hill
I'm also having trouble understanding why people are making Saudi Arabia a scapegoat in this.
1. US has doubled oil production since 2007. We're now the biggest producer in the world. Still drives global prices down because we no longer import as much oil.
2. Global demand is slowing down due to global economic slowdown.
3. Conflicts in Middle East no longer look as dire for production as they did a few years ago. Expectation of future production is therefore higher.
So yes, while the Arab cartel could lower their own production to stop prices from dropping and potentially make them rebound, why should they? They've obviously judged that it's in their own best interest to keep things the way they are for the time being. Why would you expect them to do otherwise? Is it somehow their responsibility?
Again, they aren't the cause of this problem, even though they have the power to "fix" the problem (and it's not a problem for everyone).
1. US has doubled oil production since 2007. We're now the biggest producer in the world. Still drives global prices down because we no longer import as much oil.
2. Global demand is slowing down due to global economic slowdown.
3. Conflicts in Middle East no longer look as dire for production as they did a few years ago. Expectation of future production is therefore higher.
So yes, while the Arab cartel could lower their own production to stop prices from dropping and potentially make them rebound, why should they? They've obviously judged that it's in their own best interest to keep things the way they are for the time being. Why would you expect them to do otherwise? Is it somehow their responsibility?
Again, they aren't the cause of this problem, even though they have the power to "fix" the problem (and it's not a problem for everyone).
This post was edited on 1/26/15 at 4:59 pm
2
Posted on 1/26/15 at 5:03 pm to Hog on the Hill
lets just nationalize the energy sector. Set a price and tell everybody they will never lose their jobs no matter how much tje government loses.
Posted on 1/26/15 at 5:07 pm to Hog on the Hill
quote:
So yes, while the Arab cartel could lower their own production to stop prices from dropping and potentially make them rebound, why should they? They've obviously judged that it's in their own best interest to keep things the way they are for the time being. Why would you expect them to do otherwise? Is it somehow their responsibility?
All sorts of this.
As a country we have economically benefited ourselves throughout our history, getting the better of a long, long list of countries. Now people are getting mad that it's happening to us? Some introspection would be beneficial here.
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